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Eric, Thanks for the comment. There seems to be some confusion about the purpose of my calculations. No doubt my exposition is at fault. Let me clarify three key points. First, I am doing these calculations to illustrate a more general point: that there is great heterogeneity amongst countries near the low-middle boundary in terms of their ability to deal with poverty through domestic redistribution. I argue that the way I have measured this makes sense—that its assumptions are defensible. I do not claim it is the only way. But is suffices to demonstrate my key point: any use of these income graduation thresholds in discussing development assistance is questionable, given that heterogeneity. Second, I am not saying that one should use my measure of capacity for redistribution to “reset the income clusters used by the World Bank.” The role of my measure is to point out that those clusters carry little weight for the policy discussions that have relied on them. They should be handled with greater care. I agree that a major re-think of these income clusters is needed. I understand that these thresholds have been reviewed a few times over the last 40 years but each time they have survived un-changed. Maybe a deeper re-think is called for this time. Third, my measure already does what you ask for, namely to assess “the capacity of countries at each income level to redistribute income to the poor” (your words) as judged by poverty lines used in developing countries. The domestic poverty line is taken to be $2 a day, which is the average poverty line of developing countries. So I am using “their own standards” as you want. The US poverty line of $13 is NOT the assumed floor for incomes in developing countries as you say. Rather it is the point above which hypothetical taxes are levied on the citizens of developing countries to finance transfers to those living below $2 a day. Here the logic is that donors would not (presumably) want people who would be judged poor in the donor country to finance redistribution to even poorer. Yes, one could use the (typically higher) poverty lines found in Western Europe. But using the US line seems adequate for the purpose of the exercise. I hope this is now clearer. Martin